Tag Archives: power
Foresight To Invest In Kedco’s U.K. Biomass Power Facility
By Louise Downing June 04, 2013 Foresight Group LLP, a U.K. investor, will channel funds into Kedco Plc (KED)’s planned biomass facility in London and help raise further money for the project. Foresight will provide funds for debt and equity to part finance construction and operation of the 12-megawatt project, Cork, Ireland-based Kedco said in a statement. A co-investor is needed to invest, it said. Foresight today confirmed the deal. Kedco, which has invested more than 2 million pounds ($3 million) in the plant, will retain equity and won’t be required to invest further. Construction is due for the third quarter. The U.K. Department of Energy and Climate Change estimates bioenergy plants may meet 8 percent to 11 percent of the nation’s primary energy demand by 2020. To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net Continue reading
EU Should Move Beyond Carbon Market to Shut Coal, IEA Says
By Mathew Carr & Sally Bakewell – Jun 10, 2013 The European Union needs to think of other ways to prevent new coal-fired power stations from being built because its carbon market won’t achieve that this decade, according to the International Energy Agency . Nations should consider measures including bans of new and inefficient plants known as “sub-critical,” unless they are fitted with carbon capture and storage technology, Maria Van der Hoeven, the executive director of the Paris-based agency that advises 28 developed nations, said today in a London interview. 3:41 June 10 (Bloomberg) — International Energy Agency Executive Director Maria van der Hoeven discusses the IEA’s view that the European Union needs to think of other ways to prevent new coal-fired power because its carbon market won’t achieve that target through 2020. She talks with Bloomberg’s Mathew Carr in London. (Source: Bloomberg) EU carbon permits, which have plunged 88 percent since 2008, would need to trade at 10 times their current value of about 4 euros ($5.28) a metric ton to prompt utilities to switch to cleaner natural gas from coal, according to a Bloomberg fuel switch calculator. The push in Europe to improve energy efficiency helped drive down permit prices, Van der Hoeven said. “What we want to see is that sub critical coal-fired power plants are less in use and are not going to be constructed any more,” Van der Hoeven said. “The most important thing is we look into the reasons beyond the collapse in the price of carbon” to explain why emissions are not falling faster. Lawmakers need to review energy policies to make sure they don’t contradict each other or overlap to cut emissions and protect the climate, Van der Hoeven said. Halting Plants “Governments have to look into the complementarity of what they are doing. If you only look at one technology and forget about the rest, that doesn’t help,” she said. While the IEA does not have the authority to stop nations using coal power, it’s urging them to halt construction of new units, Van Der Hoeven said. “We show them with our report what will happen if they don’t,” she said, referring to a report published today called “Redrawing the Energy-Climate Map.” The publication contains two different scenarios. Under a situation that limits an increase in global temperature to 2 degrees Celsius (3.6 Fahrenheit), the world will leave two thirds of its fossil fuel reserves untapped before 2050. Under that climate-saving scenario, revenues in the power industry through 2035 from 2012 are $1.3 trillion higher than in the agency’s central case, which includes fewer climate protection policies. “The higher gross revenues result from a combination of lower electricity demand and higher electricity prices, with the latter effect proving slightly larger,” according to the report. Technology, legislation, markets and industry can operate together to save the climate, Van der Hoeven said. “When the Stone Age came to and end, it wasn’t because there was no stones anymore, but because we had different technologies,” she said. “There’s no need to use coal for our energy supply if we have other options.” To contact the reporters on this story: Mathew Carr in London at m.carr@bloomberg.net ; Sally Bakewell in London at sbakewell1@bloomberg.net To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net Continue reading
Climate Change: Let’s Bury The CO2 Problem
We can’t stop fossil fuels being burned: but we can easily act now to capture and store carbon with CCS technology Myles Allen The Guardian , Wednesday 5 June 2013 22.05 BST The carbon capture unit at Longannet power station, Scottish Power’s test project that will see CO2 emissions extracted from the coal-fired power plant. Photograph: Murdo Macleod How often have you read that we have a once-in-a-generation opportunity to solve the problem of climate change – shortly followed by frustration and disappointment? People might expect me, as a climate scientist, to be disappointed by the failure of the attempt by the MP Tim Yeo to set an ambitious decarbonisation target in Tuesday’s debate on the energy bill. But I’m not. Not because I don’t think it is possible, or even desirable: get climate policy right, and I believe we will have largely decarbonised the UK power sector by 2030. And the UK, having led the world into this era of venting fossil carbon into the atmosphere, clearly has a duty to lead the world out of it. But ambitious targets backed by micromanagement of energy supply and demand are leading nowhere. What other country is going to attend a seminar on the UK energy bill and think, “Great idea, let’s do that”? They won’t even be able to read the powerpoint slides. The time is right to move forward on climate policy. This may seem a strange claim to environmentalists: the pace of warming is reported to have slowed , and projections are being revised downwards. At the same time, evidence continues to emerge that the world will only stop warming when we stop dumping carbon dioxide in the atmosphere altogether. The conditions for an effective global deal could hardly look worse. But the very fact that so many have come to believe, rightly or wrongly, that the climate response is at the low end of the range of uncertainty provides us with an opportunity. Rather than targets for arbitrary years, we should aim for a policy explicitly linked to rising temperatures. If George Osborne really believes global warming has stopped, he would have no reason to object. Ideas like this have been floated before, but too often they amount to kicking the can down the road. There is no point in “wait and see” if – after another decade or two of research into solar and nuclear power, or a modest carbon tax – we find ourselves in exactly the same position as now: fossil fuels dominating global energy supplies and far cheaper than any alternative, only with another couple of hundred billion tonnes of fossil carbon dumped, irreversibly, into the atmosphere. The problem requires a different approach. We started out before the industrial revolution with roughly 4 trillion tonnes of fossil carbon underground. We have dumped about half a trillion tonnes into the atmosphere, and have up to a trillion more tonnes to go before we commit ourselves either to warming substantially greater than two degrees or some form of geoengineering. Given the extraordinary profits that can be made from the extraction and use of fossil fuels, no conceivable carbon tax or cap-and-trade regime is going to prevent a substantial fraction of those 2½ trillion “excess” tonnes from being burned somewhere, someday. Nor should it: what right have we today to prevent the citizens of India of the 2080s from touching their coal? So the only thing that really matters for long-term climate is that we deploy the technology – carbon capture and sequestration (CCS) – to bury carbon dioxide at the same rate we dig up fossil carbon before we release too much. Shell , in its latest scenarios, predicts that conventional measures will have only a modest impact on global emissions until about 2040, at which point rising concern about climate change will trigger a crash CCS programme, mopping up over 50% of extracted carbon in only a couple of decades. For the taxpayers and consumers of the 2040s – bearing the full cost, and risks, of such rapid deployment – this is the worst possible outcome. It is revealing that Shell’s scenario-builders envisage large-scale deployment of CCS only when it is made mandatory. Two of just a handful of demonstration CCS projects in Europe were recently cancelled, in part because of the collapse of the carbon price. But once you realise that CCS will be needed in the end, it would be far safer, simpler and fairer to mandate gradual deployment, so we can spread the cost over a couple of generations and provide time to evaluate and monitor the storage options. Anyone who extracts or imports fossil fuels should be required to sequester a steadily increasing fraction of their carbon. The maths could not be simpler: we need to increase the fraction of carbon we sequester by, on average, 1% for every 10bn tonnes of carbon dumped in the atmosphere. This is one regulation, affecting a handful of major companies. The policy can adapt to rising temperatures by adjusting the rate. So start at 1% per 10 billion tonnes and plan to adjust the rate when, say, temperatures reach 1.5 degrees above preindustrial. Crucially, this is not asking the impossible of future politicians. If the evolving evidence suggests we need to treble the rate of CCS deployment sometime around 2030, that would be feasible. Adjusting regulations on a single industry is something politicians find easy: as we found with the fuel tax escalator in the UK or the European emission trading scheme , when times get tough, supporting an energy tax or carbon price is not. Mandatory sequestration is transparent, fair, easy to monitor, and above all clearly addresses the problem. If we introduce it, it would be simple to request that our European and broader trading partners to do the same. Having solved the long-term climate problem, we might well need a complex energy bill to ensure security of supply in the 2030s, particularly given the uncertain cost of all that mandatory sequestration. That might well involve subsidies to renewables to ensure we don’t become over-dependent on Russian gas. But it would be what it says on the tin: an energy bill. Climate change would have nothing to do with it. Continue reading